India 10-year bond slumps to lowest in nearly a month as Middle East oil risks heat up

India's benchmark 10-year bond yield rose nearly 5 basis points to 6.828%, the highest in nearly a month, as escalating U.S.-Iran tensions pushed Brent crude up 2.5% to $90.34. The rupee weakened 0.25% to 96.52 per dollar, while overnight index swap rates surged across tenors with the one-year rate up 9.5 bps to 6.02%. Traders warned that $4.3 billion of foreign inflows into Indian debt since June may moderate as FCNR flows underwhelm and geopolitical risks persist.